By Admin 
India saudi arabia oil refinery deal: Saudi Arabia is going to take big steps to make its place in India’s refining sector. This Muslim country will work closely with Indian companies to build two refinery in India. First Saudi Arabia has failed to fail twice in this region. Now Saudi wants to take such decisions to secure the future of its oil. According to sources, the capacity of each refinery will be around 90 lakh tonnes annually. In this, Aramco may have to spend around Rs 18,000 crore for 26% equity stake. After meeting PM Modi, both countries have agreed to develop business in India.
Saudi Arabia’s decision to work closely with India is important. Due to this, Pakistan may have to suffer losses later. Since the Pahalgam attack, tension has increased in relations between India and Pakistan. Along with all the countries, Saudi Arabia has also condemned this terrorist attack.
Running talk to buy stake up to 26%
ET had informed in a report in October 2024 that Bharat Petroleum Corporation (BPCL) and Oil and Natural Gas Corporation (ONGC) are negotiating to include Saudi Arabia in their separate refinery projects. In both refinery projects, Aramco is negotiating to buy a stake by 26%. BPCL is preparing a report for its refinery-cum-petrochemical factory in Andhra Pradesh. The capacity of this factory can be 9–12 million tonnes annually.
According to sources, the cost of facility of 9 MTPA capacity can be around Rs 95,000 crore. PCL and his associate will have to invest Rs 33,000 crore in equity. If there is such a deal with ONGC, you may have to invest around Rs 18,000 crore.
Why could not the deal be done yet?
In the year 2018, Saudi Aramco had tied up for a 50% stake in the 60 million tonnes of refinery-cum-patrochemical project in Maharashtra with a group of government refineries Indian Oil, BPCL and HPCL-, but the project could not proceed due to problems in land acquisition. In 2019, Aramco agreed to buy 20% stake in $ 15 billion in Reliance Industries oil-to-chemistry business. However, the deal was canceled after two years due to disagreement in the evaluation.
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